Eni Amoca Hit Makes Mexico Double
Wednesday 12 July 2017
Eni announced a successful appraisal well at the Amoca field off Mexico on Wednesday, prompting the Italian major to increase its in-place resource estimate for the field to 1 billion barrels of oil equivalent and an "acceleration" of its development plans.
The company said the Amoca-3 well came across 410 metres (1345 feet) of net oil pay in "several high-quality Pliocene reservoir sandstones", with oil of 25 to 27 degrees API.
Of that level, "300 meters were found in the deeper sequence of Cinco Presidentes, in various cluster levels of Pliocenic age with good reservoir characteristics," the company said.
"Eni will submit an accelerated and phased development plan in 2017 targeting an early production phase with a plateau ranging from 30,000 to 50,000 barrels of oil per day with the start of operations planned for early 2019," the company said in a statement.
The well has been suspended but will be used for production later. A 45-metre stretch of the Cinco Presidentes formation flowed at a rate of 6000 barrels per day during a production test.
The work was completed by the Seadrill jack-up West Castor.
The find added to a banner day for Mexico exploration since energy reforms passed in 2013 opened the country's oil and gas sector to private operators.
Eni made its announcement just hours after independent Talos Energy revealed a find nearly as large at the Zama-1 prospect, the first pure exploration well drilled on acreage obtained in Mexico's first ever public bid round, Round 1.1. It is partnered by Sierra Oil & Gas and UK-listed Premier Oil.
The wells of Eni, which operates the block alone, were appraisals of discoveries already made by Pemex, part of Area 1 assigned in Round 1.2 targeted at development acreage.
"We are very pleased with the results of our exploration and appraisal campaign in Mexico which demonstrates the validity of our design to cost exploration approach," chief executive Claudio Descalzi said.
"The Amoca field, which is located at a water depth of only 25 meters, represents an optimal opportunity for a phased development approach with a low breakeven. It is an ideal project in this low oil price environment.
"Eni’s objective is to become the first international company to establish operating production in Mexico, which would be the first tangible success of the country’s important “Reforma energetica” campaign."